MakerDAO Weighs Ditching $390 mn of Gemini Dollars
MakerDAO, a decentralised finance (DeFi) lending platform and stablecoin issuer, may shortly withdraw $390 million in GUSD stablecoin from its reserves.
The protocol’s community is presently voting on a proposal known as the Peg Stability Module, which would reduce the maximum amount of GUSD kept in Maker’s DAI stablecoin reserve from $500 million to $110 million.
With less than 24 hours until the vote, about 94% of people who have already voted support the idea to reduce GUSD. A similar proposal in January, however, saw a late surge of votes in favour of keeping the GUSD, giving that side a razor-thin 50.85% majority.
The vote is critical for the future of GUSD because Maker controls around 88% of the stablecoin’s $568 million circulating supply. Maker backs the value of the $4.5 billion DAI by holding cryptocurrencies such as Circle’s USDC and GUSD in the reserve, and increasingly by investing in real-world assets like government bonds.
(With inputs from Shikha Singh)
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